Czech Prime Minister Andrej Babis’s plan to lower income taxes risks boosting the prices of homes and other assets, without bringing major benefits for economic recovery from the coronavirus-fueled recession, the country’s budget watchdog said.
Czech businesses now have until the beginning of 2023 to resume electronic reporting of sales—an important anti-tax evasion tool—under a bill that passed the Senate Thursday. The bill, which passed by a 40-0 margin, with 3 abstentions, now heads to the president for signature. Previously, the Czech Republic had suspended electronic reporting of sales until the end of this year.
The Czech ruling coalition is preparing a tax overhaul to leave more money in the wallets of low-income employees, a move that would further cut budget revenue already hit by the pandemic crisis.
Czech lawmakers approved legislation Tuesday that would reduce value-added tax on travel accommodations and allow companies to offset losses.
The Czech Ministry of Finance June 8 extended various tax relief measures due to the coronavirus pandemic. The tax measures include a waiver of late penalties for filing and paying real estate acquisition taxes until Dec. 31 or a deadline extension to Aug. 18 for filing income taxes.
The Czech Republic will extend suspension of electronic reporting of sales until the end of the year, under legislation adopted by the country’s parliament Tuesday.
The Czech Republic has delayed a discussion about reducing the rate of a proposed digital tax on tech giants like Facebook and Google. Government officials are worried that the proposed 7% digital tax on tech companies with global turnover over EUR 750 million is too high compared to similar measures across Europe.
The Czech Republic parliament passed a bill Wednesday that would refund breweries their excise duties on beer that goes unsold because of the coronavirus pandemic. The tax administration will judge refund requests case by case, and the beer will have to be either liquidated or reprocessed.
The Czech Republic appears unmoved by U.S. threats of retaliation if it imposes a digital services tax on tech companies. Michal Zurovec, spokesman for the Czech Ministry of Finance, said his country’s plans to impose a 7% digital tax haven’t changed, despite U.S. pressure.
The Czech Republic’s planned tax on digital services will be only temporary, Foreign Minister Tomas Petricek says in a reaction to U.S. criticism of the proposal. “I understand that the United States perceive this negatively,” Petricek said on the public television CT. “On the other hand, we’re trying to explain that this step is only temporary until an international solution is found.”